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What are the insurance requirements?

Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business. Minimum insurance limits are:

$25,000 bodily injury/person/accident
$50,000 combined bodily injury/accident
$25,000 property damage/accident or a combined single limit of $75,000/accident
(Section 402-12-392, Code of Alabama 1975)

Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business. Minimum insurance limits are: $25,000 bodily injury/person/accident $50,000 combined bodily injury/accident $25,000 property damage/accident or a combined single limit of $75,000/accident (Section 402-12-392, Code of Alabama 1975)
Related FAQs in Dealer License, General
The primary location is included in the license fee. There is a $5.00 charge per additional location. (Section 40-12-395, Code of Alabama 1975)
A $5 fee is only required when additional locations are added to the license.
The licensed dealer must apply for an off-site sales event license at least 10 calendar day prior to conducting the off-site sale. The application fee is $25. The off-site sale events shall not exceed 3 per dealer license year with each sale not to exceed 10 consecutive calendar days in duration. A temporary sign must be displayed at the location where the off-site sale is conducted. A facilitator of an off-site sale will be required to obtain a master off-site sales license. The facilitator will be required to verify the off-site license of participating dealers. The facilitator must list each participating dealer’s off-site sale license number on the application. If the dealer and facilitator are the same entity, only the master off-site sales event license is required. (Section 40-12-395, Code of Alabama 1975)
Motor vehicle dealers must electronically update their dealer license information using the Motor Vehicle License Portal. A new insurance certificate must be provided for the new location. Retail dealers must also furnish photographs of the new location and signage.
All dealers are required to become a designated agent.
Licenses are not mailed. When your application has been approved, you will receive an email instructing you to login to the system and print your license.